Would also be good if they started printing 2000r notes again.

Spigzy wrote: ↑Thu Jul 15, 2021 10:12 am

mannanman wrote: ↑Thu Jul 15, 2021 9:00 am Only ever got two 15k riel notes. Both at once. Never saw one again.

You probably should have held on to those as they were a special commemorative edition for the King's coronation anniversary - those weirdo collectors would probably give you way over the face value for a pristine one in years to come.

Maybe but it also buys 5 beers so what could I do!

March 24, 2022
De-dollarisation a long-term goal, say financial experts

Cambodia’s macroeconomic stability is of paramount importance to maintain the full confidence of all agents and ensure continued economic growth. The ultimate replacement of the dollar by riel in the Cambodian economy will only take place step by step as both the private sector and the households progressively build their awareness and trust in the national currency, and consequently their willingness to use it

Over the last two decades, Cambodia’s macroeconomic and financial stability created the pre-conditions to promote riel to play its full role as the sovereign currency in all means of payment and settlement.

Mar Amara, Senior EVP and Group Chief Finance Officer, ACLEDA Bank, told Khmer Times, “It is suitable. Still, the best is that it should be step by step to build investors (both existing and in the stage for attracting new investors) confidence. NBC requires all banks and MFIs to have at least 10 percent of the loan portfolio in KHR for all banks and MFIs. NBC also supports the Royal Government which plans to issue government bonds this year. So far, NBC has also supported banks and financial institutions to issue bonds in KHR.”

Blaise Kilian, Co-director, SOSORO Museum, said, “People’s mindset, habit, and network externalities remain among the main barriers to successfully de-dollarise our economy at the moment. Hence, de-dollarisation is a long-term goal. The strategy adopted by the National Bank of Cambodia to achieve this goal is the gradual promotion of riel based on market mechanisms.

Cambodia’s macroeconomic stability is of paramount importance to maintain the full confidence of all agents and ensure continued economic growth. Therefore, the ultimate replacement of the dollar by riel in the Cambodian economy will only take place step by step as both the private sector and the households progressively build their awareness and trust in the national currency, and consequently their willingness to use it.”

RIEL BENEFITS
Ky Sereyvath, Director of the Chinese Study Center and a researcher in economics at the Royal Academy of Cambodia, said, “We can promote riel with the joint efforts of all stakeholders. For example, the government may further reduce its spending (financing) in US dollar, the private sector may open more bank accounts in riel for their staff, and the public should use more riel in their daily business transactions.

The financial expert explained that to encourage the use of the riel, it is necessary to create an enabling regulatory framework for the private sector and raise awareness and build trust among the public.

“Three broad types of measures are currently implemented to achieve this long-term objective,” said Kilian.

First, regulations have been adopted to promote and reward the use of riel in the banking system.

Banks and financial institutions must maintain at least 10 percent of their portfolio in riel. The reserve requirement rate for foreign currencies is set higher than the riel (12.5 percent against 8 percent), but during the Covid-19 crisis, both have been lowered to 7 percent. These measures have been designed to encourage banking and financial institutions to provide more loans in riel.

Second, new instruments have been created to facilitate and therefore promote the use of riel.

These include electronic payment systems such as “Fast Payment” and “Retail Pay” and interoperable QR payment systems that allow Cambodian tourists visiting Thailand and Malaysia to pay in riel with their mobile apps. Likewise, the National Bank of Cambodia’s latest product, the Bakong payment system, promotes using the riel with previously unbanked, non-urban populations. Liquidity Providing Collateralised Operations (LPCO) auctions have been designed to provide liquidity in riel for the banking sector.

Third, information and awareness-raising campaigns have intensified so that the private sector and the public, in general, build their knowledge and trust in the national currency. As part of this awareness-raising campaign, restaurants and other outlets have been required to display their prices in riel.
In full: https://www.khmertimeskh.com/501046673/ ... experts-2/

There are various benefits to Cambodia for having more riel use everywhere but I feel like a big benefit to many foreigners and investors is the ease of using and conducting business in dollars. Am I the only one who thinks that it would be much preferrable to have an enviornment in Asia where I can use at least one of RMB, USD, EU?

De-Dollarization and the Importance of Public Sentiment in Cambodia
The challenge of promoting the use of the riel is not just one of monetary policy. It also touches on questions of Cambodian national identity.
By Leang Seakleng
July 18, 2022

There are a number of reasons why the Cambodian government has long sought to achieve “rielization” – limiting the use of the United States dollar and promoting the circulation of the local currency, the riel.

First, as Chea Serey, governor of the National Bank of Cambodia (NBC), has put it, widespread use of the riel “could enhance the effectiveness of conducting monetary policy to maintain price stability and support economic growth.”

Second, the NBC cannot be a lender of last resort – offering loans to banks or other eligible institutions that are experiencing financial difficulties – if it cannot get people to hold the local currency.

Due to dollarization, the Cambodian government is also missing out on seigniorage, or the value that can be gained from printing a currency note.

Cambodia needs to be more cautious about the global economic recovery. The rising inflationary trends in major developed economies since the outbreak of the COVID-19 pandemic might put the country’s economy on edge, while the U.S. Federal Reserve’s recent interest rate hikes could also lead to depreciation of the riel.

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According to the World Bank’s latest economic update, high inflation in the United States, and subsequent monetary tightening by the Fed, could lead to “rising domestic price pressures, which often results in imported inflation.”

However, it’s clear that the push to bring Cambodia closer to full riel saturation, and away from the use of the U.S. dollar is about more than just straightforward monetary policy. This initiative is also a question of bolstering the riel’s connection to the Cambodian national identity.

In July 2017, the Ministry of Commerce issued an inter-ministerial agreement requiring all businesses and service providers to use riel on the price tags of their products and services. And in 2020, the NBC announced another campaign to phase out the circulation of small-denomination U.S. dollar bills in the economy.

These initiatives are not only to push toward a more robust “rielization” but also have been accompanied by messaging from officials about what it would mean, in a symbolic way, for Cambodia to be more dependent on its own currency.
Full article: https://thediplomat.com/2022/07/de-doll ... -cambodia/